The Truth about Claiming Bankruptcy

For the millions of people that suffer through the reality
of troubled finances, bankruptcy is a very real option, though it may not be the
best option in all situations. Perhaps because they are under pressure to quickly
resolve their money woes, those that struggle financially tend not to think
things through completely. They are prone to making quick decisions without
first considering all of the potential consequences that might result. Such is
the case with personal bankruptcy. While claiming bankruptcy can be a valid
option for those seeking financial relief, there are some things that should be
made clear before the paperwork is filed.

Chief among the misconceptions regarding bankruptcy is the
belief that it will somehow completely erase your financial concerns, allowing
you to continue on with your life without issue. Whenever you hear some say "I'll
just claim bankruptcy," you really have to wonder what they're thinking. The
fact is that bankruptcy is far from a no strings attached solution, and there
is nothing easy about it. Before you can even fill out the bankruptcy claim
forms to get the process started, your finances will be scrutinized and you
will asked to declare all of your assets, liabilities and even list your
household income. If you decide to go through with process, some of your listed
assets will be used to pay back certain portions of your debt, and while some
of your debt will be forgiven through the process, other forms like child
support and alimony will not. You will still be required to pay this debt back
even after the bankruptcy process is completed, which incidentally can take
8-10 years. During this time it will be almost impossible to qualify for any
type of decent credit.

Now that you're aware of some of the consequences associated
with claiming bankruptcy, you need to know how to properly initiate the
process. The best thing you can do is to seek the advice of a bankruptcy
attorney, who can help you make the best choice regarding when and how to file.
A good attorney can also discuss some of the many alternatives to a bankruptcy
claim, of which there are many. Ultimately, bankruptcy can be a saving grace
for those looking for a way out of financial misery, though it's critical that
people have a thorough understanding of the process before getting started. So
be sure to take the time to consider your options before making a firm commitment
one way or the other.